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MTS Announces Third Quarter 2019 Financial Results

RA'ANANA, Israel, Dec. 26, 2019 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact center software, today released its financial results for the three and nine months ended September 30, 2019.

 

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The Company recorded revenues of $1.2 million for the three months ended September 30, 2019 compared with $1.4 million for the three months ended September 30, 2018. The Company incurred a net loss of $(14,000) for the three months ended September 30, 2019, or $(0.00) per diluted share compared with a net loss of $(227,000), or $(0.07) per diluted share, for the comparable period in 2018. On a non-GAAP basis (as described and reconciled below), the Company posted net income of $189,000, or $0.04 per diluted share, for the three months ended September 30, 2019 compared with a net loss of $(58,000), or $(0.02) per diluted share, for the comparable period in 2018.

The Company recorded revenues of $3.8 million for the nine months ended September 30, 2019, compared with $4.3 million for the nine months ended September 30, 2018. The Company incurred a net loss of $(234,000), or $(0.05) per diluted share, for the nine months ended September 30, 2019 compared with a net loss of $(1.3) million, or $(0.4) per diluted share, for the comparable period in 2018. On a non-GAAP basis (as described and reconciled below), the Company posted net income of $19,000, or $0.00 per diluted share, for the nine months ended September 30, 2019 compared with a net loss of $(852,000), or $(0.26) per diluted share, for the comparable period in 2018.

As of September 30, 2019, the Company had cash and cash equivalents of approximately $1.7 million, compared with $1.2 million as of December 31, 2018.

Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2019 reflect the substantial reduction of our ongoing operating expenses attributed to the declining operation and the successful execution of our efforts to improve our operating margins in light of the business pressures that we face. We recently entered the field of omnichannel contact center software. In June 2019, we introduced Omnis - Contact Center Software with "Out-Of-The-Box" capabilities and open channel architecture. In this quarter we started to see initial revenues from this new product, which we consider to be our main growth engine in the coming years. As previously reported, we are also continuing our efforts to find an M&A opportunity.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. Headquartered in Israel, MTS markets its solutions through wholly-owned subsidiaries in Israel, the U.S and Hong Kong, as well as through distribution channels. For more information please visit the MTS web site: www.mtsint.com.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company's ability to achieve  profitable operations, its ability  to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements,  customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel,  general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission.

 

 

 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

 



September 30,

2019

Unaudited


December 31,

 2018

Audited

ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$        1,683


$       1,150

Restricted cash


770


1,380

Trade receivables, net


360


604

Other accounts receivable and prepaid expenses


204


101

Assets of discontinued operations


149


187

 

Total current assets


3,166


3,422






SEVERANCE PAY FUND


631


541






PROPERTY AND EQUIPMENT, NET


73


60











OTHER ASSETS:





Other intangible assets, net


6


21

Goodwill


3,225


3,479






Total other assets


3,231


3,500






Total assets


$         7,101


$         7,523







 

 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

 

 

 


September 30,

2019


December 31,

2018



Unaudited


Audited

LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Trade payables


$               115


$            164

Deferred revenues


1,042


1,053

Accrued expenses and other liabilities


1,604


2,394

Liabilities of discontinued operations


554


606






Total current liabilities


3,315


4,217






LONG-TERM LIABILITIES





Accrued severance pay


813


722

Deferred tax liability


140


181

 

Total long-term liabilities


953


903






COMMITMENTS AND CONTINGENT LIABILITIES










SHAREHOLDERS' EQUITY:





Share capital -





Ordinary Shares


29


27

Preferred Shares


15


10

Additional paid-in capital


30,464


29,807

Treasury shares


(29)


(29)

Accumulated deficit


(27,646)


(27,412)






Total shareholders' equity


2,833


2,403






Total liabilities and shareholders' equity


$       7,101


$    7,523

 

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)






























Nine months ended 


Three months ended 

September 30,

September 30,



2019


2018


2019


2018

Revenues:









Services


$   3,194


$ 3,613


$ 1,015


$ 1,272

Product sales


646


695


225


160










Total revenues


3,840


4,308


1,240


1,432










Cost of revenues:









Services


1,150


1,299


365


364

Product sales


288


325


92


112










Total cost of revenues


1,438


1,624


457


476










Gross profit


2,402


2,684


783


956










Operating expenses:









Research and development


408


672


140


167

Selling and marketing


564


1,195


11


338

General and administrative


1,679


1,755


701


531










Total operating expenses


2,651


3,622


852


1,036










Operating loss


-249


-938


-69


-80

Financial income (expenses), net


-27


1


-2


-7










Loss before taxes on income


-276


-937


-71


-87

Tax benefit


-38


-3


-39


-2










Loss from continuing operations


-238


-934


-32


-85










Income (loss) from discontinued operations


4


-346


18


-142










Net loss


$  (234)


$  (1,280)


$   (14)


$   (227)










Net loss per share:









   Basic and diluted net loss per share from continuing operations


$ (0.05)


$ (0.29)


$ (0.00)


$ (0.03)

Basic and diluted net loss per share from discontinued operations


0


-0.11


0


-0.04










Basic and diluted net loss per share


$ (0.05)


$ (0.40)


$ (0.00)


$ (0.07)










Weighted average number of shares used in computing basic and diluted net loss per share  


4,863,489


3,179,963


5,181,402


3,294,323









 

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except share and per share data)



 

Nine months ended

September 30,


Three months ended

September 30,



2019


2018


2019


2018










GAAP net loss from continuing operations


(238)


(934)


(32)


(85)

Stock-based compensation expenses


39


67


13


22

Intangible assets amortization


15


15


5


5

Goodwill impairment, net of tax effect


203


-


203


-










Non-GAAP net income (loss)


$     19


$   (852)


$   189


$  (58)










Net loss per share:


















  GAAP basic and diluted net loss per share from continuing operations


$    (0.05)


$    (0.29)


$    (0.00)


$    (0.03)

Non-GAAP basic and diluted net income (loss) per share from continuing operations


$       0.00


 

$     (0.26)


$       0.04


$     (0.02)










Weighted average number of shares used in computing Non-GAAP basic net income (loss) per share


4,863,489


3,179,963


5,181,402


3,294,323

Weighted average number of shares used in computing Non-GAAP diluted net income (loss) per share


4,925,436


3,179,963


5,367,245


3,294,323










 

Contact:   
Ofira Bar, CFO 
Tel: +972-9-7777-540 

 

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SOURCE Mer Telemanagement Solutions Ltd. (MTS)